Section 69: Transaction value

1 The primary basis for the customs value of goods shall be the transaction value.

2 The transaction value is the price actually paid or payable for the goods when sold for export to the Federal Republic of Nigeria adjusted, when necessary, in accordance with the provisions of Article 8 of the Agreement on Customs Valuation.

3 The price actually paid or payable is the total payment made or to be made by the buyer to the seller or by the buyer to a third party for the benefit of the seller for the imported goods and includes all payments made or to be made as a condition of sale of the imported goods.

4 The transaction value shall be applied if -
a there are no restrictions as to the disposition or use of the goods by the buyer than restrictions which -
(i) are imposed or required by law or by the Federal Republic of Nigeria,
(ii) limit the geographic area in which the goods may be resold, or
(iii) do not substantially affect the value of the goods;
b the sale or price is not subject to some conditions or consideration for which a value cannot be determined with respect to the goods being valued;
c no part of the proceeds of any subsequent resale, disposal or use of the goods by the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment can be made in accordance with the provision of this section; and
d the buyer and seller are not related, or where the buyer and seller are related, that the transaction is acceptable under the provisions of this section.

5 For the purpose of this section, persons shall be deemed to be related if -
a they are officers or directors of one another’s businesses;
b their relationship is one of employer and employee;
c any of such person directly or indirectly owns, controls or holds 5% or more of the outstanding voting stock or shares of either of the person;
d one of the persons directly or indirectly controls the other;
e the persons are directly or indirectly controlled by a third person;
f together, the persons directly or indirectly control a third person; or
g the persons are members of the same family.

6 The fact that the buyer and seller are related shall not solely constitute grounds for rejecting a transaction value.

7 Where the buyer and seller are related, the circumstances surrounding the sale shall be examined and the transaction value shall be accepted provided that there is no proof to the contrary that the relationship influenced the price.

8 Where the Service has grounds to believe that the relationship amongst persons concerned in a transaction influenced the price, it shall communicate the grounds to the persons concerned and provide them with opportunity to respond within a reasonable period of time.

9 In a sale between related persons, the transaction value shall be accepted if the declarant demonstrates that the transaction value closely approximates one of the following values occurring at or about the same time the -
a transaction value in sales to unrelated buyers of identical or similar goods for export to Nigeria; and
b Customs value of identical or similar goods as determined under sections 70 and 71 of this Act.

10 In determining the transaction value under this section, there shall be added to the price actually paid or payable for the imported goods -
a the following costs, to the extent that they are incurred by the buyer but are not included in the price actually paid or payable for the goods -
(i) commissions and brokerage, except buying commission,
(ii) the cost of containers which are treated as being one for customs purposes with the goods in question, and
(iii) the cost of packing whether for labour or materials, to the extent that these costs are incurred by the buyer but excluded from the price actually paid for the goods;
b the value, apportioned as appropriate, of the goods and services listed in this paragraph, where supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale for export of the imported goods, to the extent that such value has not been included in the price actually paid or payable -
(i) materials, components, parts and similar items incorporated in the imported goods,
(ii) tools, dies, moulds and similar items used in the production of the imported goods,
(iii) material consumed in the production of the imported goods,
(iv) engineering, development artwork, design work and plans and sketches undertaken elsewhere than in the country of importation and necessary for the production of the imported goods, and
(v) royalties and license fees related to the goods being valued that the buyer must pay either directly or indirectly, as a condition of sale
of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable;
c the cost of transport of the goods to the port or place of importation;
d the loading, unloading and handling charges associated with the transport of the goods to the port or place of importation; and
e the cost of insurance.

11 Any addition to the price actually paid or payable shall be made only on the basis of objective and quantifiable data.

12 Additions shall not be made to the price actually paid or payable in determining the customs value except as provided in this section.